Energy debt scheme could help millions of households
Ofgem and ministers plan targeted relief for historic arrears while reviewing payment systems and prepayment protections.
The government and Ofgem have announced a strategy to tackle household energy debt accumulated during the 2022–24 energy crisis. A proposed relief scheme could consider support for up to 2.4 million customers, although eligibility and the final amount written off are not yet settled.
Ofgem said electricity and gas debt and arrears across Great Britain reached £5bn in the second quarter of 2026. The proposed Debt Relief Scheme is expected to launch in spring 2027 and would target households in genuine financial difficulty with eligible historic debt.
The government says pensioners and people receiving disability or means-tested benefits could qualify, provided they re-engage with suppliers and agree realistic repayment arrangements where necessary. The scheme is intended to support customers who have little realistic prospect of paying historic debt in full.
Ofgem estimates that the debt covered by the proposal could total £2.47bn, but said the amount eventually written off would depend on participation and individual decisions. Not every customer with historic arrears will necessarily receive support.
The wider strategy also proposes changes to the process for opening and transferring energy accounts when people move home. Ofgem is examining whether the rules for involuntary prepayment meters continue to protect vulnerable customers while allowing suppliers to recover debt.
The regulator said reforms to payment methods and home-move processes could prevent more than £5bn of new debt by 2036 and save a typical household around £130 over 10 years. Those are government and Ofgem estimates, not guaranteed savings.
Ofgem has opened a discussion on prepayment protections and said no decisions have yet been made on the detailed rules. Suppliers, consumer groups and debt organisations will be invited to respond before the scheme’s final design is agreed.
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One story, several perspectives
What is established
- Ofgem and the government have proposed a relief scheme for historic energy debt.
- The final rules have not been decided.
- The strategy includes both debt relief and stronger expectations that customers repay sustainable debts.
Left
Arguments Energy debt arose during a crisis that households could not reasonably absorb, so relief should be broad enough to prevent poverty and forced prepayment. Energy companies and government should carry more of the cost.
Values Social protection, affordability and fairness.
Consequences Greater relief could reduce hardship but spread costs across taxpayers or other billpayers.
Centre
Arguments Targeted relief combined with engagement and repayment is more sustainable than blanket cancellation. Protections should be based on vulnerability and evidence.
Values Fairness, fiscal responsibility and workable administration.
Consequences A targeted scheme may balance help and affordability but could exclude people who narrowly miss the criteria.
Right
Arguments Bills are contractual obligations and widespread write-offs risk encouraging non-payment. Support should be tightly targeted, while suppliers should be allowed to recover legitimate debt.
Values Personal responsibility, market discipline and taxpayer protection.
Consequences Strict eligibility could limit moral hazard but leave some households under severe pressure.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Priya Shah — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The figures and proposed measures come from Ofgem and government publications. Forecast savings and the number of eligible households are clearly presented as estimates or potential eligibility.
Editor's note
The strategy is announced, but the relief scheme’s final eligibility rules and actual write-off total remain undecided.Sources
More on this in other media
- The Guardian — „energy bills”
- BBC News — „energy bills”
- Sky News — „energy bills”